State tax filing

If you are getting this error, and you have no Schedule C or Schedule C-EZ, then you must delete any prior self-employment forms and Schedule C on your returns.

If you had self-employment income from a 1099-MISC in the prior year, it would have been carried over to this year's return as a 1099-NEC. For 2020, nonemployee compensation on the prior year Form 1099-MISC is now reported on Form 1099-NEC. You should also delete this from your return. 

To delete, please follow the instructions below:

1. Open your return.
2. Search for 1099-NEC with the magnifying glass tool at the top of the page.
3. Click on the Jump to 1099-NEC link at the top of the search results. 
4. Delete any 1099-NEC's entries with the trash can icon. 
5. Then, search for Schedule C with the magnifying glass tool on the top of the page.
6. Select the Jump to Schedule C link in the search results.
7. Select No to the question Did you have any self-employment income or expenses?

Next, please make sure to delete any Schedule C or associated self-employment forms in your return.

1. Click on Tools.
2. Click on Delete a Form. 
3. Scroll down to your forms and look for forms you need to remove (Schedule C and Schedule SE) and click Delete. 

This should remove any self-employment forms on your return and Alabama will not be looking for an entry for AL Form 40, Line 2 of Page 2. Once the steps above are complete, you can refile your return.